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ISBN 978-111-9-46885-1; ebk.: 978-111-9-47077-9; ebk.: 978-111-9-470700-0

Contents

Preface

1 Understanding Best Practices

1.0 Introduction
1.1 WÄRTSILÄ
1.2 Project Management Best Practices: 1945–1960
1.3 Project Management Best Practices: 1960–1985
1.4 Project Management Best Practices: 1985–2016
1.5 Project Management Best Practices: 2016–Present
1.6 Benefits Management Practice at Dubai Customs
1.7 An Executive’s View of Project Management
1.8 Best Practices Process
1.9 Step 1: Definition of a Best Practice
1.10 Step 2: Seeking Out Best Practices
1.11 Dashboards and Scorecards
1.12 Key Performance Indicators
1.13 Step 3: Validating the Best Practice
1.14 Step 4: Levels of Best Practices
1.15 Step 5: Management of Best Practices
1.16 Step 6: Revalidating Best Practices
1.17 Step 7: What to Do with a Best Practice
1.18 Step 8: Communicating Best Practices across the Company
1.19 Step 9: Ensuring Usage of the Best Practices
1.20 Common Beliefs
1.21 Best Practices Library
1.22 Hewlett-Packard: Best Practices in Action
Notes

2 From Best Practice to Migraine Headache

2.0 Introduction
2.1 Good Intentions Becoming Migraines
2.2 Enterprise Project Management Methodology Migraine
2.3 Trade-off Migraine
2.4 Customer Satisfaction Migraine
2.5 Migraine Resulting from Responding to Changing Customer Requirements
2.6 Reporting Level of the PMO Migraine
2.7 Cash Flow Dilemma Migraine
2.8 Scope Change Dilemma Migraine
2.9 Outsource or Not Migraine
2.10 Determining When to Cancel a Project Migraine
2.11 Providing Project Awards Migraine
2.12 Migraine from Having the Wrong Culture in Place
2.13 Migraines Due to Politics
2.14 Migraines Caused by the Seven Deadly Sins
2.15 Sources of Smaller Headaches
2.16 Ten Uglies of Projects
Notes

3 Journey to Excellence

3.0 Introduction
3.1 Strategic Planning for Project Management
3.2 Roadblocks to Excellence
3.3 Hitachi Ltd.
References
3.4 RTA’s Top Management Support for Project Management Excellence
3.5 Intel Corporation and “Map Days”
3.6 Apple Computer and Cell Phones
3.7 The Light at the End of the Tunnel
3.8 Pursuit Healthcare Advisors
3.9 Managing Assumptions
3.10 Managing Assumptions in Conservation Projects—WWF
3.11 Project Governance
3.12 Seven Fallacies That Delay Project Management Maturity
3.13 Motorola
3.14 Texas Instruments
3.15 Hewlett-Packard: Recognizing the Need
3.18 Hewlett-Packard: The Journey and the Obstacles
3.19 Naviair: On Time—On Budget
3.20 Avalon Power and Light
3.21 Roadway Express
3.22 Kombs Engineering
3.23 Williams Machine Tool Company
Notes

4 Project Management Methodologies

4.0 Introduction
4.1 Excellence Defined
4.2 Recognizing the Need for Methodology Development
4.3 Enterprise Project Management Methodologies
4.4 Benefits of a Standard Methodology
4.5 Critical Components
4.6 Airbus Space and Defence: Integration of the APQP Methodology within Project Life Cycle
4.7 Project Quality Gates—Structured Approach to Ensure Project Success
4.8 Airbus Space and DefenCe: Integrated Multilevel Schedules
4.9 Técnicas Reunidas
4.10 Yanfeng Global Automotive Interior Systems Co. Ltd.
4.11 Sony Corporation and Earned Value Management
4.12 Project Management Tools and Socialized Project Management
4.13 Artificial Intelligence and Project Management
4.14 Life-Cycle Phases
4.15 Expanding Life-Cycle Phases
4.16 Churchill Downs Incorporated
4.17 Indra: The Need for a Methodology
4.18 Implementing the Methodology
4.19 Implementation Blunders
4.20 Overcoming Development and Implementation Barriers
4.21 WÄrtsilÄ: Recognizing the Need for Supporting Tools
4.22 General Motors Powertrain Group
4.23 Ericsson Telecom AB
4.24 Indra: Closing the Project
4.25 Rockwell Automation: Quest for a Common Process
4.26 Sherwin-Williams
4.27 Hewlett-Packard
4.28 Airbus Space and Defence: Golden Rules in Project Management
4.29 When Traditional Methodologies May Not Work

5 Integrated Processes

5.0 Introduction
5.1 Understanding Integrated Management Processes
5.2 Evolution of Complementary Project Management Processes
5.3 Zurich America Insurance Company
5.4 Total Quality Management
5.5 Concurrent Engineering
5.6 Risk Management
5.7 Wärtsilä: The Need for Proactive Risk Management
5.8 Indra: When a Risk Becomes Reality (Issue Management)
5.9 The Failure of Risk Management
5.10 Defining Maturity Using Risk Management
5.11 Boeing Aircraft Company
5.12 Change Management
5.13 Other Management Processes
Notes

6 Culture

6.0 Introduction
6.1 Creation of a Corporate Culture
6.2 Corporate Values
6.3 Types of Cultures
6.4 Corporate Cultures at Work
6.5 GEA and Heineken Collaboration: A Learning Experience
6.6 Indra: Building a Cohesive Culture
6.7 DFCU Financial
6.8 Hewlett-Packard
6.9 Barriers to Implementing Project Management in Emerging Markets
Notes

7 Management Support

7.0 Introduction
7.1 Visible Support from Senior Managers
7.2 Project Sponsorship
7.3 Excellence in Project Sponsorship
7.4 The Need for a Project Cancellation Criteria
7.5 Hewlett-Packard Sponsorship in Action
7.6 Zurich America Insurance Company: Improving Stakeholder Engagement
7.7 Project Governance
7.8 Tokio Marine: Excellence in Project Governance
7.9 Empowerment of Project Managers
7.10 Management Support at Work
7.11 Getting Line Management Support
7.12 Initiation Champions and Exit Champions
Notes

8 Training and Education

8.0 Introduction
8.1 Training for Modern Project Management
8.2 Need for Business Education
8.3 SAP: Importance of a Project Management Career Path
8.4 Program Management Training at Thyssenkrupp North America
8.5 International Institute for Learning
8.6 Identifying the Need for Training
8.7 Selecting Participants
8.8 Fundamentals of Project Management Education
8.9 Some Changes in Project Management Education
8.10 Designing Courses and Conducting Training
8.11 Measuring the Return on Investment on Education
8.12 Project Management Is Now a Profession
8.13 Competency Models
8.14 Harris Corporation
8.15 Nokia: Recognizing the Value of Project Management Excellence
8.16 Hewlett-Packard
Notes

9 Informal Project Management

9.0 Introduction
9.1 Informal versus Formal Project Management
9.2 Trust
9.3 Communication
9.4 Cooperation
9.5 Teamwork
9.6 Color-Coded Status Reporting
9.7 Crisis Dashboards
9.8 Informal Project Management at Work
Notes

10 Behavioral Excellence

10.0 Introduction
10.1 Situational Leadership
10.2 Conflict Resolution
10.3 Staffing for Excellence
10.4 Virtual Project Teams
10.5 Rewarding Project Teams
10.6 Keys to Behavioral Excellence
10.7 Proactive versus Reactive Management
Notes

11 Measuring Return on Investment on Project Management Training Dollars

11.0 INTRODUCTION
11.1 PROJECT MANAGEMENT BENEFITS
11.2 GROWTH OF ROI MODELING
11.3 THE ROI MODEL
11.4 PLANNING LIFE-CYCLE PHASE
11.5 DATA COLLECTION LIFE-CYCLE PHASE
11.6 Data Analysis Life-Cycle Phase
11.7 Reporting Life-Cycle Phase
11.8 Conclusions
Notes

12 The Project Office

12.0 Introduction
12.1 Boeing
12.2 Philips Business Group Patient Care and Monitoring Services
12.3 NTT DATA
12.4 Cisco Systems
12.5 Churchill Downs Incorporated: Establishing a PMO
12.6 Churchill Downs Incorporated: Managing Scope Changes
12.7 Types of Project Offices
12.8 Hewlett-Packard
12.9 Star Alliance
12.10 Project Audits and the PMO
12.11 Project Health Checks
12.12 PMO of the Year Award
Notes

13 Six Sigma and the Project Management Office

13.0 Introduction
13.1 Project Management—Six Sigma Relationship
13.2 Involving the PMO
13.3 Traditional versus Nontraditional Six Sigma
13.4 Understanding Six Sigma
13.5 Six Sigma Myths
13.6 Use of Assessments
13.7 Project Selection
13.8 Typical PMO Six Sigma Projects
Notes

14 Project Portfolio Management

14.0 Introduction
14.1 The Portfolio Management Journey at Nordea
14.2 Resource Management as Part of Portfolio Management at Nordea
14.3 Involvement of Senior Management, Stakeholders, and the PMO
14.4 Project Selection Obstacles
14.5 Identification of Projects
14.6 Preliminary Evaluation
14.7 Strategic Selection of Projects
14.8 Strategic Timing
14.9 Analyzing the Portfolio
14.10 Problems with Meeting Expectations
14.11 Portfolio Management at Rockwell Automation
14.12 WWF—World Wide Fund for Nature (also known as World Wildlife Fund)
Notes

15 Global Project Management Excellence

15.0 Introduction
15.1 IBM
15.2 Citigroup, Inc.
15.3 Microsoft Corporation
15.4 Deloitte: Enterprise Program Management
15.5 Comau
15.6 Fluor Corporation: Knowledge Management for Project Execution
15.7 Siemens PLM Software: Developing a Global Project Management Methodology
Notes

16 Value-Driven Project Management

16.0 Introduction
16.1 Value over the Years
16.2 Values and Leadership
Notes

17 Effect of Mergers and Acquisitions on Project Management

17.0 Introduction
17.1 Planning for Growth
17.2 Project Management Value-Added Chain
17.3 Preacquisition Decision Making
17.4 Landlords and Tenants
17.5 Some Best Practices When Companies Work Together
17.6 Integration Results
17.7 Value Chain Strategies
17.8 Failure and Restructuring
Notes

18 Agile and Scrum

18.0 Introduction
18.1 Introduction to Agile Delivery
Notes

19 Benefits Realization and Value Management

19.1 Introduction
19.2 Understanding the Terminology
19.3 Redefining Project Success
19.4 Value-Drive Project Management
19.5 Benefits Harvesting
19.6 The Business Case
19.7 Timing for Measuring Benefits and Value
19.8 Investment Life-Cycle Phases
19.9 Categories of Benefits and Value
19.10 Converting Benefits to Value
19.11 Go-Live Project Management
19.12 Portfolio Benefits and Value
19.13 Alignment to Strategic Objectives
19.14 Causes of Complete or Partial BRM Failure
19.15 Conclusion
Notes

Index

EULA

List of Tables

TABLE 1-1
TABLE 1-2
TABLE 1-3
TABLE 1-4
TABLE 1-5

TABLE 2-1
TABLE 2-2
TABLE 2-3

TABLE 3-1
TABLE 3-2
TABLE 3-3
TABLE 3-4
TABLE 3-5
TABLE 3-6
TABLE 3-6
TABLE 3-7

TABLE 6-1
TABLE 6-2
TABLE 6-3
TABLE 6-4
TABLE 6-5
TABLE 6-6

TABLE 7-1
TABLE 7-2
TABLE 7-3

TABLE 8-1
TABLE 8-2

TABLE 9-1
TABLE 9-2
TABLE 9-3

TABLE 10-1
TABLE 10-2

TABLE 11-1
TABLE 11-2
TABLE 11-3

TABLE 12-1

TABLE 13-1
TABLE 13-2
TABLE 13-3
TABLE 13-4

TABLE 14-1
TABLE 14-2

TABLE 15-1

TABLE 16-1
TABLE 16-2
TABLE 16-3
TABLE 16-4
TABLE 16-5
TABLE 16-6
TABLE 16-7

TABLE 17-1
TABLE 17-2
TABLE 17-3

TABLE 18-1
TABLE 18-2

TABLE 19-1
TABLE 19-2
TABLE 19-3
TABLE 19-4
TABLE 19-5
TABLE 19-6
TABLE 19-7
TABLE 19-8
TABLE 19-9

List of Illustrations

Figure 1-1. The components of survival.
Figure 1-2. Speed of maturity.
Figure 1-3. Project management costs versus benefits.
Figure 1-4. Benefits alignment map.
Figure 1-5. Benefits realization management framework.
Figure 1-6. Benefits realization maturity model.
Figure 1-7. Portfolio benefits quadrant.
Figure 1-8. Best practices processes.
Figure 1-9. Best practices levels. Each level contains a percentage of the ideal characteristics.
Figure 1-10. Typical financial health dashboards.
Figure 1-11. Typical financial health dashboards.
Figure 1-12. Knowledge transfer.
Figure 1-13. Levels of best practices.
Figure 1-14. Usefulness of best practices.
Figure 1-15. Levels of best practices.
Figure 1-16. Creating a best practices library.
Figure 1-17. Best practices library.
Figure 1-18. Management of a best practice.

Figure 2-1. Risk growth.
Figure 2-2. Constraints and challenges.
Figure 2-3. Spending curve.
Figure 2-4. Stakeholder mapping.
Figure 2-5. Observed interrelationships.

Figure 3-1. Components of survival.
Figure 3-2. Project management support components.
Figure 3-3. The across-the-organization circulation process for empirical knowledge in project management.
Figure 3-4. The Hitachi Phase-Gate Management Process.
Figure 3-5. D-WBS project outline.
Figure 3-6. RTA organizational chart.
Figure 3-7. RTA goals and objectives.
Figure 3-8. PMO levels and scope of work in RTA.
Figure 3-9. Relation between the benefits management life-cycle and projects life cycle.
Figure 3-10. Enterprise project management.
Figure 3-11. Identifying the mission.
Figure 3-12. Identifying the metrics.
Figure 3-13. Example (simplified) of a conceptual model for Swan Coastal Plain in southwest Australia.
Figure 3-14. Example (simplified) of a results chain for Swan Coastal Plain in southwest Australia.
Figure 3-15. Success pyramid.
Figure 3-16. Texas Instruments success pyramid.
Figure 3-17. The transformation.
Figure 3-18. How to make big and complex programs a success.
Figure 3-19. On-time–on-budget framework (Naviair).
Figure 3-20. High-performance teams.

Figure 4-1. Release management stages.
Figure 4-2. Release management stages: bundling requests.
Figure 4-3. When to prepare the charter.
Figure 4-4. APQP Phase with Gate Reviews
Figure 4-5. Project quality gates are defined in the project management plan and are set at critical stages in the project life cycle.
Figure 4-6. The phases of ASAP.
Figure 4-7. The ASAP methodology elements.
Figure 4-8. The new delivery approach
Figure 4-9. Example of integrated multilevel schedule.
Figure 4-10. Typical life-cycle phases.
Figure 4-11. Typical cost elements.
Figure 4-12. Steps to achieve OBE target.
Figure 4-13. Typical schedule advantage.
Figure 4-14. Major Components of Program Management.
Figure 4-15. Sony’s negative cycle.
Figure 4-16. SPI (progress rate) transition by team.
Figure 4-17. Overall project progress forecasting (linear approximation).
Figure 4-18. The progress improvement cycle.
Figure 4-19. Components of intellectual property.
Figure 4-20. The Churchill Downs Incorporated methodology.
Figure 4-21. Project management life cycle.
Figure 4-22. Indra’s project management life cycle.
Figure 4-23. Common product development process: basic concepts.
Figure 4-24. Initiation phase summary.
Figure 4-25. Feasibility phase summary.
Figure 4-27. An integrated approach to an integrated solution activity phase mapping.
Figure 4-28. Activity phase mapping.

Figure 5-1. Six components of excellence.
Figure 5-2. Totally uncoupled processes.
Figure 5-3. Partially integrated processes.
Figure 5-4. Totally integrated processes.
Figure 5-5. Integrated processes for twenty-first century.
Figure 5-6. Future risks.
Figure 5-7. Proactive project risk management process in Wärtsilä power plants.
Figure 5-8. Indra’s project risk management process.
Figure 5-9. Indra’s project risk monitoring in the PMIS.

Figure 6-1. Types of values.
Figure 6-2. GEA Project Management Model.
Figure 6-3. Project management foundations.
Figure 6-4. People: Internal trainers.
Figure 6-5. “Project Management at Indra” course on the e-learning platform.
Figure 6-6. “PMPnet” in Sharing Knowledge tool.
Figure 6-7. DFCU Financial’s project initiation process.
Figure 6-8. .DFCU Financial’s corporate projects database.
Figure 6-9. DFCU Financial’s resource planning document.

Figure 7-1. Roles of project sponsor.
Figure 7-2. The requirements gap.
Figure 7-3. The Application Owner System in Tokio Marine Group.
Figure 7-4. Number of system troubles.
Figure 7-5. Tokio Marine group’s priority controls.
Figure 7-6. Valley of death.

Figure 8-1. Types of project management training.
Figure 8-2. Project management and program management development path.
Figure 8-3. Sponsor Awareness Workshop
Figure 8-4. Amount of training by type of industry and year of project management experience.
Figure 8-5. Effective planning steps.

Figure 9-1. Evolution of policies, procedures, and guidelines.
Figure 9-2. Evolution of paperwork and change of formality levels.
Figure 9-3. Internal and external communication channels for project management.

Figure 10-1. Reinforcement model.
Figure 10-2. Driving metaphor.
Figure 10-3. Proactivity graph.
Figure 10-4. Increasing PMCP.

Figure 11-1. The ROI model.
Figure 11-2. Postmortem pyramid.

Figure 12-1. Healthcare projects complexity drivers.
Figure 12-2. Healthcare projects complexity drivers.
Figure 12-3. Customer life cycle: A holistic approach to achieve best customer experience.
Figure 12-4. Scalable project implementations: The SOLiD design and delivery framework for PCMS.
Figure 12-5. Solution delivery: The SOLiD design and delivery framework for PCMS.
Figure 12-6. NTT DATA Services global project delivery framework.
Figure 12-7. PMO process flow.
Figure 12-8. Global method, program methodology: standardized approach using industry best practices with company added value.
Figure 12-9. Using the PMO for facilitation.
Figure 12-10. Mapping the PMO to functionality.

Figure 13-1. Six Sigma categories (traditional view).
Figure 13-2. Six Sigma categories (nontraditional view).
Figure 13-3. Time and effort expended.
Figure 13-4. Project selection cube.
Figure 13-5. Six Sigma quantitative evaluation.

Figure 14-1. PPM Clarity Resource Reports.
Figure 14-2. Project selection process.
Figure 14-3. R&D strategic planning process.
Figure 14-4. Modeling the innovation process.
Figure 14-5. Mortality of new product ideas.
Figure 14-6. Cumulative expenditures and time.
Figure 14-7. Scoring model.
Figure 14-8. Checklist for three projects.
Figure 14-9. Scaling model for one project, project A.
Figure 14-10. Typical project portfolio.
Figure 14-11. High-risk portfolio.
Figure 14-12. Profit portfolio.
Figure 14-13. Balanced portfolio.
Figure 14-14. Rolling wave concept.
Figure 14-15. Portfolio management and a common product development stage-gate process.
Figure 14-16. Project management process and common template overview.
Figure 14-17. Sample consolidated dashboard for WWF forest programs (all data hypothetical)

Figure 15-1. The three dimensions of IBM’s project management system.
Figure 15-2. Customized project management system.
Figure 15-3. IBM’s Enterprise Project Management Office.
Figure 15-4. Project Office capabilities design and implementation.
Figure 15-5. IBM’s Project and Program Management career growth path.
Figure 15-6. Career framework validation
Figure 15-7. The Refinement Process
Figure 15-8. How IBM sees the Badge Earner, itself, and its clients.
Figure 15-9. IBM badges.
Figure 15-10. IBM best practices.
Figure 15-11. MSF models and disciplines.
Figure 15-12. MSF team model
Figure 15-13. MSF team of teams.
Figure 15-14. MSF iterative approach.
Figure 15-15. MSF risk management process.
Figure 15-16. Risk prioritization example.
Figure 15-17. MSF governance model: enactment tracks.
Figure 15-18. MSF envision track.
Figure 15-19. MSF plan track.
Figure 15-20. MSF build track.
Figure 15-21. MSF stabilize track.
Figure 15-22. MSF deploy track.
Figure 15-23. Project trade-off matrix.
Figure 15-24. Deloitte Enterprise Program Management Framework.
Figure 15-25. Deloitte Enterprise Value Map™ (EVM).
Figure 15-26. Deloitte Portfolio Management Framework.
Figure 15-27. Deloitte Investment Framework.
Figure 15-28. Deloitte Portfolio Management Process.
Figure 15-29. Deloitte Program Management Framework.
Figure 15-30. Comparison of fixed organizational factors versus variable factors.
Figure 15-31. Deloitte PM tool characteristics.
Figure 15-32. Key factors for PM deployment.
Figure 15-33. Activities required to develop a work plan.
Figure 15-34. Deloitte Project Portfolio Governance Framework
Figure 15-35. Deloitte People Dimension of Transformation framework.
Figure 15-36. Comau worldwide.
Figure 15-37. Comau PMO missions.
Figure 15-38. Comau PMO business model.
Figure 15-39. Comau portfolio management.
Figure 15-40. PMO geographical presence.
Figure 15-41. Comau global PM process.
Figure 15-42. Project management process sources.
Figure 15-43. Project management process paradigm.
Figure 15-44. The Comau Risk Management Program.
Figure 15-45. Generating and preserving the company value chain.
Figure 15-46. Risk management for new contracts//opportunities.
Figure 15-47. Global operative instruction and Project Risk Register Portal.
Figure 15-48. Comau Academy: companies and professional.
Figure 15-49. Comau Academy: Young talent.
Figure 15-50. Comau Academy: Young talent tools.
Figure 15-51. Comau publications.
Figure 15-52. Fluor governance model
Figure 15-53. Knowledge collaboration.
Figure 15-54. The PLM VDM internal website.

Figure 16-1. .Definition of success.
Figure 16-2. Evolution of value-based knowledge.
Figure 16-3. The VPF model.
Figure 16-4. Project management value conflicts.
Figure 16-5. Classification of projects.
Figure 16-6. Traditional triple constraints.
Figure 16-7. Value-driven triple constraints.
Figure 16-8. Four cornerstones of success.
Figure 16-9. Traditional trade-offs.
Figure 16-10. Value-driven trade-offs.
Figure 16-11. Shortcomings.
Figure 16-12. Quantitative versus qualitative assessment.
Figure 16-13. The boundary box.

Figure 17-1. Generic value-added chain.
Figure 17-2. Project management value-added chain.
Figure 17-3. Project management problem areas after an acquisition.
Figure 17-4. Project management system after acquisition.
Figure 17-5. Four generic strategies for project management.
Figure 17-6. Risk spectrum for type of project.
Figure 17-7. Risk spectrum for the types of R&D projects.
Figure 17-8. Restructuring outcomes.

Figure 18-1. Levels of project management maturity.
Figure 18-2. The essence of agile delivery is to deliver value early and often
Figure 18-3. Waterfall methodology delays the start of the build phase.
Figure 18-4. Agile delivery overlaps project phases to deliver value sooner.
Figure 18-5. Agile delivery flips the iron constraints of a project,.
Figure 18-6. Cone of Uncertainty demonstrating what is not known about a project over its various waterfall phases.
Figure 18-7. Channels of communications in a team increase exponentially based on the formula Team size × (Team size - 1) / 2.
Figure 18-8. Example of a waterfalled iteration where work is done by sequential phases. If time runs out during an iteration, it is likely that little value or working software will be delivered.
Figure 18-9. Requirements completed per priority in typical agile delivery fashion. If time runs out during an iteration, the work on the most important requirements will at least have been completed, thus delivering value in the form of working software.
Figure 18-10. The six components that are the essence of Scrum.
Figure 18-11. The four Scrum ceremonies
Figure 18-12. How the activities fit together
Figure 18-13. Deloitte Enterprise Value Delivery (EVD) for Agile framework.
Figure 18-14. Delivery Process Work Breakdown Structure.
Figure 18-15. EVD standards by phase.
Figure 18-16. Job roles.

Figure 19-1. Creation of business value over time.
Figure 19-2. Investment life cycle.
Figure 19-3. Resource management activities.
Figure 19-4. Categories of benefits and value.
Figure 19-5. Project scoring model.
Figure 19-6. Project scoring model with points assigned.
Figure 19-7. Match projects to strategic business objectives.
Figure 19-8. Periodic benefits and value achieved.

Preface

For almost 50 years, project management was viewed as a process that might be nice to have but not one that was necessary for the survival of the firm. Companies reluctantly invested in some training courses simply to provide their personnel with basic knowledge of planning and scheduling. Project management was viewed as a threat to established lines of authority, and in many companies only partial project management was used. This halfhearted implementation occurred simply to placate lower- and middle-level personnel as well as select customers.

During this 50-year period, we did everything possible to prevent excellence in project management from occurring. We provided only lip service to empowerment, teamwork, and trust. We hoarded information because the control of information was viewed as power. We placed personal and functional interests ahead of the best interest of the company in the hierarchy of priorities, and we maintained the faulty belief that time was a luxury rather than a constraint.

By the mid-1990s, this mentality began to subside, largely due to two recessions. Companies were under severe competitive pressure to create high-quality products in a shorter period of time. The importance of developing a long-term trusting relationship with the customers had come to the forefront. Businesses were being forced by the stakeholders to change for the better. The survival of the firm was now at stake.

Today, businesses have changed for the better, and project management was a large part of the change. Trust between the customer and contractor is at an all-time high as well as trust between management and the project teams. New products are being developed at a faster rate than ever before. Project management has become a competitive weapon during competitive bidding. Some companies are receiving sole-source contracts because of the faith that the customer has in the contractor's ability to deliver a continuous stream of successful projects using a project management methodology that today appears more like a framework or flexible methodology than a rigid approach. All of these factors have allowed a multitude of companies to achieve some degree of excellence in project management. Business decisions are now being emphasized ahead of personal decisions.

Words that were commonplace 15 years ago have taken on new meanings today. Change is no longer being viewed as being entirely bad. Today, change implies continuous improvement. Conflicts are no longer seen as detrimental. Conflicts managed well can be beneficial. Project management is no longer viewed as a system entirely internal to the organization. It is now a competitive weapon that brings higher levels of quality and increased value-added opportunities for the customer. In many companies, project management is treated as a strategic competency that is one of the four or five career paths in the company that are critical for the company's future.

Companies that were considered excellent in management in the past may no longer be regarded as excellent today, especially with regard to project management. Consider the book entitled In Search of Excellence, written by Tom Peters and Robert Waterman in 1982 (published in New York by Harper & Row). How many of the companies identified in their book are still considered excellent today? How many of those companies have won the prestigious Malcolm Baldrige Award? How many of those companies that have won the award are excellent in project management today? Excellence in project management is a never-ending journey. Companies that are reluctant to invest in continuous improvements in project management soon find themselves with low customer satisfaction ratings.

The differentiation between the first 50 years of project management and the last 10 years is the implementation of project management on a company-wide basis. For more than three decades, we emphasized the quantitative and behavioral tools of project management. Basic knowledge and primary skills were emphasized, and education on project management was provided only to a relatively small group of people. However, within the past 15 years, emphasis has been on implementation across the entire company. What was now strategically important was how to put 30 years of basic project management theory in the hands of a few into corporate-wide practice. Today it is the implementation of company-wide project management applications that constitutes advanced project management. Subjects such as earned value analysis, situational leadership, and cost and change control are part of basic project management courses today; 20 years ago, they were considered advanced topics in project management. So, what constitutes applied project management today? Topics related to project management implementation, enterprise project management methodologies (whether flexible or rigid), different types of project management offices, and working with stakeholders are advanced project management concepts.

This book covers the advanced project management topics necessary for implementation of and excellence in project management. The book contains numerous quotes from people in the field who have benchmarked best practices in project management and are currently implementing these processes within their own firms. Quotes in this book were provided by several senior corporate officers as well as others. The quotes are invaluable because they show the thought process of these leaders and the direction in which their firms are heading. These companies have obtained some degree of excellence in project management, and what is truly remarkable is the fact that this happened in less than five or six years. Best practices in implementation will be the future of project management well into the twenty-first century. Companies have created best practices libraries for project management. Many of the libraries are used during competitive bidding for differentiation from other competitors. Best practices in project management are now viewed as intellectual property.

Excellence in project management is not achieved simply by developing a project management methodology. Instead, it is how the methodology is used again and again that creates excellence and a stream of successfully managed projects. We are now trusting project managers with flexible methodologies where they can use just those components of the standard methodology that are needed for a particular project.

Project management practices and methodologies are built around the culture of companies and by determining what it takes to get people to work together, solve problems, and make decisions. Because each company most likely has its own unique culture, it is understandable that each company can have a different number of life-cycle phases, different decision points, and different success criteria. No single approach fits all companies, which is why this book discusses a variety of companies, in different industries, of different sizes, and on different continents. Hopefully, after reading this book, you will come up with ideas as to how your project management activities can improve.

Companies that are discussed in this book include:

3 M
ABB
Airbus Space and Defence
Alcatel-Lucent
American Greetings
Apple Computer
Armstrong World Industries
Babcock & Wilcox
Bendix
Boeing
Chrysler
Churchill Downs Incorporated
Cisco
Citigroup, Inc.
Comau
Dell
Deloitte
Department of Defense
DFCU Financial
Dow Chemical
Dubai Customs
EDS
Eli Lilly
Ericsson
Fluor Corporation
Ford
GEA
General Electric
General Motors
Harris
Heineken
Hewlett-Packard
Hitachi
IBM
Indra
Intel Corporation
International Institute for Learning
Johnson Controls
Kodak
MCI
Microsoft
Minnesota Power & Light
Motorola
Nasa
Naviair
Nokia
Nordea
Nortel
NTT DATA
Ohio Bell
Orange Switzerland
Our Lady of Lourdes Regional Medical Center
Philips
Pursuit
Rockwell Automation
RTA
SAP
Sherwin Williams
Siemens
Sony
Sprint
Star Alliance
Técnicas Reunidas
Thiokol
thyssenkrupp
Tokio Marine
Wärtsilä
World Wildlife Fund
Xerox
Yanfeng

Seminars and webinar courses on project management principles and best practices in project management are available using this text and my text Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 12th edition (Hoboken, NJ: Wiley, 2017). Accompanying this text is a companion website, www.wiley.com/go/pmbestpractices4, where Instructors can access PowerPoint lecture slides, and an instructor’s manual. Seminars on advanced project management are also available using this text. Information on these courses, e-learning courses, and in-house and public seminars can be obtained by contacting:

Lori Milhaven, Executive Vice President, IIL

Phone: 800-325-1533 or 212-515-5121

Fax: 212-755-0777

E-mail: lori.milhaven@iil.com

Harold Kerzner

International Institute for Learning, Inc.

2018

PROJECT

MANAGEMENT BEST PRACTICES

Achieving Global Excellence

Preface